Executive Briefing - Feb. 28
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Johnson Controls To Cut 300 Jobs
Johnson Controls (JCI), a Milwaukee-based company that makes components for vehicle manufacturing, plans to cut 300 employees from its Michigan operations by June, Bloomberg reported Wednesday.The plan comes as result of a slowing automotive market, Bloomberg said. But that is another is a recent series of cuts from various types of manufacturers, which in turn signals weaker freight shipments ahead.
The company mainly produces car seats and other automotive interiors, plus batteries for some commercial trucks abroad. Transport Topics
Parts-Maker Core Materials Blames Trucks for Loss
Vehicle-parts maker Core Materials (CME) said a decline in truck manufacturing heavily impacted its fourth-quarter loss.For the quarter ending Dec. 31, Core Materials reported a net loss of $440,000 or 5 cents per share, compared with a loss of $378,000 or 4 cents per share for the same period last year.
In a statement released with its earnings, the company said its 28% drop came as a result of "the industry-wide decline in end-customer truck orders and truck production." Transport Topics
(Click here for the full press release.)
OTR Shows 4Q Loss, Downsizing Plans
Olathe, Kan.-based trucking company OTR Express (OTR) reported a fourth-quarter loss of $1.97 per share, compared with a 52-cent loss share during the same period in 1999.
The company said it is in the process of downsizing to deal with a tough trucking market.
This plan involves operating with only 215 company-owned tractors and 50 owner-operators. In addition, it plans to sell 190 tractors and 400 trailers to help reduce debt. Transport Topics
(Click here for the full press release.)
U.S. Economic Growth Revised Weaker
In its second estimate of how fast the U.S. economy grew in the fourth quarter of last year, the Commerce Department said Wednesday that gross domestic product grew at an annual rate of just 1.1% in the October-December period.Commerce had previously put GDP at a still-low 1.4% at the end of 2000, but Wednesday's downward revision is another sign that the economy was very close to recession levels as the year ended.
Some economists think GDP is contracting in the current quarter. And in recent weeks a number of analysts have been warning that the economy may not pick up again by midyear, as many had predicted earlier.Transport Topics
Canada's Economy Brakes More Than Expected
Canada's economy grew at a 2.6% annualized pace in the fourth quarter, slower than the 3.2% rate analysts had predicted and the weakest pace since the second quarter of 1998, Bloomberg reported.The weak growth came as business investment declined, consumer spending slowed and export demand dropped.
The United States is one of Canada's biggest trading partners, so a slowdown in the larger U.S. economy would spill over into Canada as well. Transport Topics
Grupo Dina Reports 4Q Losses
Mexican trucking company Consorcio G. Dina said it had a fourth-quarter loss of US $30.6 million (296 million pesos), compared with a $15.2 million (147 million pesos) loss for the same period last year.The New York Stock Exhange and Mexico's stock exchange recently suspended the company's listing after Dina said it was defaulting on a debt payment.
The Mexico City-based company is a leading Latin American producer of trucks. Transport Topics
(Click here for the full press release.)
Interpool Reports 4Q Gain
Intermodal chassis and container company Interpool (IPX) announced net income of 44 cents per diluted share for the fourth quarter of 2000, compared with 28 cents for the same period in 1999, partly due to income from another company that it bought.
During the quarter Interpool bought the North American Intermodal division of Transamerica Leasing.
Interpool plans to continue integrating employees and operations, and said its hopes for double-digit growth are spurred by historically high rates of fleet utiliza-tion.Transport Topics
(Click here for the full press release.)
Westport Launches LNG Trial with Heavy Truck
Westport Innovations and Chart Industries announced Wednesday that they have launched Canada's first customer field trial of a low-emissions heavy truck using liquefied natural gas.Using Westport's proprietary fuel system and a modified Cummins Inc. engine, the truck is designed to operate like a standard diesel fuel engine. Chart developed a portable refueling station, plus storage tanks on the truck.
Fleet operator Bobell Group of Aldergrove, B.C., will use the truck to haul wood chips from that city to Bellingham, Wash.Transport Topics
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Donaldson to Supply 160 Freightliner Service Spots
Announcing a three-year agreement with commercial truck manufacturer Freightliner, Donaldson Co. said it will become the exclusive supplier of all heavy-duty truck replacement filtration products sold at 160 locations for TravelCenters of America.Donaldson will supply replacement air, coolant, fuel and lube filters to all TA Service Shops through the Freightliner ServicePoint parts program.Transport Topics
Click here for the full press release.)
Accuride Earns Less Amid Truck Weakness
Citing a slowdown in its heavy truck business, wheel maker Accuride Corp. said Tuesday that its fourth-quarter earnings before interest, taxes, depreciation and amortization fell to $8.4 million in the fourth quarter from $24.8 million for the corresponding 1999 quarter.The privately held Evansville, Ind.-based company said its sales fell 29.3% from the fourth quarter of 1999, mainly because of a 50% drop in production of the largest class of commercial trucks. Transport Topics
(Click here for the full press release.)
